Hotelier checks in
Sep 18 2006 By Graeme King, The Journal
Hotelier Mukesh Chawla is set to create 50 jobs in County Durham and add another hotel to his expanding Ailantus chain, adding £2m to the group's sales overnight.
Newcastle entrepreneur Mr Chawla, whose five-strong North hotel chain turns over £8m, is about to buy a hotel in the North-West as well as expanding the facilities.
He also hopes to double the amount of business at his George Washington Hotel and Country Club in Washington by building a new 1,000-seater function room, a new clubhouse for the golf course, and extra food outlets. Mr Chawla has poured investment into the 18-hole golf course in the three years since he bought the hotel, with improved drainage and better quality greens.
But now he is moving on to building work, and expects the improvements to take revenues from £3m today up to £5.5m or £6m.
The entrepreneur started out in business running care homes and still retains an interest in the sector, running two homes in Seaton Sluice and Bedlington with a partner, as well as owning residential rented properties in Newcastle and London.
He said: "We are now in negotiations to acquire another hotel in the North-West. Total turnover is currently around £8m, and with the acquisition of the new hotel, it will be £10m."
Mr Chawla has also agreed a land deal with Gateshead's Bowey Homes to build 18 homes on land at the front of the George Washington Hotel. The proceeds from this sale will be ploughed into improving the hotel.
He said: "We want to double turnover here, and increase employment by 50 to 60 people. We are building a 1,000-seater function room and a new golf clubhouse with a function room for 200 people.
"Initial works have already started, and the major work will begin in January. When we bought this place, it was under-performing. We put in investment of £2m to improve the golf course, and to improve the bedroom stock, and that has really helped us to improve occupancy. Golf club membership has risen considerably, too. When we took over, it was down to 300, but this year we are aiming for 600, and we have encouraged quite a lot of corporate events.
"I know the potential of this course and I really want to put it on the map. It is a long 18 holes, I believe it is a championship quality course, and the feedback from golfers has been very promising. I think the potential for this place is enormous."
